THIRD DIVISION

[G.R. No. 171153. September 12, 2007.]

SAN MIGUEL CORPORATION EMPLOYEES UNION–PHILIPPINE

TRANSPORT AND GENERAL WORKERS ORGANIZATION (SMCEU–
PTGWO) , petitioner, vs . SAN MIGUEL PACKAGING PRODUCTS
EMPLOYEES UNION–PAMBANSANG DIWA NG MANGGAGAWANG
PILIPINO (SMPPEU–PDMP) , respondent. 1

DECISION

CHICO-NAZARIO , J : p

In this Petition for Review on Certiorari under Rule 45 of the Revised Rules of
Court, petitioner SAN MIGUEL CORPORATION EMPLOYEES UNION-PHILIPPINE
TRANSPORT AND GENERAL WORKERS ORGANIZATION (SMCEU-PTGWO) prays that
this Court reverse and set aside the (a) Decision 2 dated 9 March 2005 of the Court of
Appeals in CA-G.R. SP No. 66200, a rming the Decision 3 dated 19 February 2001 of
the Bureau of Labor Relations (BLR) of the Department of Labor and Employment
(DOLE) which upheld the Certi cate of Registration of respondent SAN MIGUEL
PACKAGING PRODUCTS EMPLOYEES UNION–PAMBANSANG DIWA NG
MANGGAGAWANG PILIPINO (SMPPEU–PDMP); and (b) the Resolution 4 dated 16
January 2006 of the Court of Appeals in the same case, denying petitioner's Motion for
Reconsideration of the aforementioned Decision.
The following are the antecedent facts:
Petitioner is the incumbent bargaining agent for the bargaining unit comprised of
the regular monthly-paid rank and le employees of the three divisions of San Miguel
Corporation (SMC), namely, the San Miguel Corporate Staff Unit (SMCSU), San Miguel
Brewing Philippines (SMBP), and the San Miguel Packaging Products (SMPP), in all
o ces and plants of SMC, including the Metal Closure and Lithography Plant in Laguna.
It had been the certified bargaining agent for 20 years — from 1987 to 1997.
Respondent is registered as a chapter of Pambansang Diwa ng Manggagawang
Pilipino (PDMP). PDMP issued Charter Certi cate No. 112 to respondent on 15 June
1 9 9 9 . 5 In compliance with registration requirements, respondent submitted the
requisite documents to the BLR for the purpose of acquiring legal personality. 6 Upon
submission of its charter certi cate and other documents, respondent was issued
Certi cate of Creation of Local or Chapter PDMP-01 by the BLR on 6 July 1999. 7
Thereafter, respondent led with the Med-Arbiter of the DOLE Regional O cer in the
National Capital Region (DOLE-NCR), three separate petitions for certi cation election
to represent SMPP, SMCSU, and SMBP. 8 All three petitions were dismissed, on the
ground that the separate petitions fragmented a single bargaining unit. 9
On 17 August 1999, petitioner led with the DOLE-NCR a petition seeking the
cancellation of respondent's registration and its dropping from the rolls of legitimate
labor organizations. In its petition, petitioner accused respondent of committing fraud
and falsi cation, and non-compliance with registration requirements in obtaining its
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 certi cate of registration. It raised allegations that respondent violated Articles 239 (a),
(b) and (c) 1 0 and 234 (c) 1 1 of the Labor Code. Moreover, petitioner claimed that
PDMP is not a legitimate labor organization, but a trade union center, hence, it cannot
directly create a local or chapter. The petition was docketed as Case No. NCR-OD-
9908-007-IRD. 1 2
On 14 July 2000, DOLE-NCR Regional Director Maximo B. Lim issued an Order
dismissing the allegations of fraud and misrepresentation, and irregularity in the
submission of documents by respondent. Regional Director Lim further ruled that
respondent is allowed to directly create a local or chapter. However, he found that
respondent did not comply with the 20% membership requirement and, thus, ordered
the cancellation of its certi cate of registration and removal from the rolls of legitimate
labor organizations. 1 3 Respondent appealed to the BLR. In a Decision dated 19
February 2001, it declared:
As a chartered local union, appellant is not required to submit the number
of employees and names of all its members comprising at least 20% of the
employees in the bargaining unit where it seeks to operate. Thus, the revocation
of its registration based on non-compliance with the 20% membership
requirement does not have any basis in the rules.

Further, although PDMP is considered as a trade union center, it is a holder

of Registration Certi cate No. FED-11558-LC issued by the BLR on 14 February
1991, which bestowed upon it the status of a legitimate labor organization with
all the rights and privileges to act as representative of its members for purposes
of collective bargaining agreement. On this basis, PDMP can charter or create a
local, in accordance with the provisions of Department Order No. 9. IEHScT

WHEREFORE, the appeal is hereby GRANTED. Accordingly, the decision of

the Regional Director dated July 14, 2000, canceling the registration of appellant
San Miguel Packaging Products Employees Union-Pambansang Diwa ng
Manggagawang Pilipino (SMPPEU-PDMP) is REVERSED and SET ASIDE.
Appellant shall hereby remain in the roster of legitimate labor organizations. 1 4

While the BLR agreed with the ndings of the DOLE Regional Director dismissing
the allegations of fraud and misrepresentation, and in upholding that PDMP can directly
create a local or a chapter, it reversed the Regional Director's ruling that the 20%
membership is a requirement for respondent to attain legal personality as a labor
organization. Petitioner thereafter led a Motion for Reconsideration with the BLR. In a
Resolution rendered on 19 June 2001 in BLR-A-C-64-05-9-00 (NCR-OD-9908-007-IRD),
the BLR denied the Motion for Reconsideration and a rmed its Decision dated 19
February 2001. 1 5
Invoking the power of the appellate court to review decisions of quasi-judicial
agencies, petitioner led with the Court of Appeals a Petition for Certiorari under Rule
65 of the 1997 Rules of Civil Procedure docketed as CA-G.R. SP No. 66200. The Court
of Appeals, in a Decision dated 9 March 2005, dismissed the petition and a rmed the
Decision of the BLR, ruling as follows:
In Department Order No. 9, a registered federation or national union may
directly create a local by submitting to the BLR copies of the charter certi cate,
the local's constitution and by-laws, the principal o ce address of the local, and
the names of its o cers and their addresses. Upon complying with the
documentary requirements, the local shall be issued a certi cate and included in
the roster of legitimate labor organizations. The [herein respondent] is an a liate
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 of a registered federation PDMP, having been issued a charter certi cate. Under
the rules we have reviewed, there is no need for SMPPEU to show a membership
of 20% of the employees of the bargaining unit in order to be recognized as a
legitimate labor union.

xxx xxx xxx

In view of the foregoing, the assailed decision and resolution of the BLR
are AFFIRMED, and the petition is DISMISSED. 1 6 DHECac

Subsequently, in a Resolution dated 16 January 2006, the Court of Appeals

denied petitioner's Motion for Reconsideration of the aforementioned Decision. HAaDcS

Hence, this Petition for Certiorari under Rule 45 of the Revised Rules of Court
where petitioner raises the sole issue of: DHaECI

WHETHER OR NOT THE HONORABLE COURT OF APPEALS COMMITTED

REVERSIBLE ERROR IN RULING THAT PRIVATE RESPONDENT IS NOT
REQUIRED TO SUBMIT THE NUMBER OF EMPLOYEES AND NAMES OF
ALL ITS MEMBERS COMPRISING AT LEAST 20% OF THE EMPLOYEES IN
THE BARGAINING UNIT WHERE IT SEEKS TO OPERATE.

The present petition questions the legal personality of respondent as a

legitimate labor organization. aICHEc

Petitioner posits that respondent is required to submit a list of members

comprising at least 20% of the employees in the bargaining unit before it may acquire
legitimacy, citing Article 234 (c) of the Labor Code which stipulates that any applicant
labor organization, association or group of unions or workers shall acquire legal
personality and shall be entitled to the rights and privileges granted by law to legitimate
labor organizations upon issuance of the certi cate of registration based on the
following requirements: aCTHEA

a. Fifty pesos (P50.00) registration fee;

b. The names of its o cers, their addresses, the principal address of the labor
organization, the minutes of the organizational meetings and the list of the
workers who participated in such meetings;
c. The names of all its members comprising at least twenty percent (20%) of all
the employees in the bargaining unit where it seeks to operate;
d. If the applicant union has been in existence for one or more years, copies of its
annual financial reports; and
e. Four (4) copies of the constitution and by-laws of the applicant union, minutes
of its adoption or rati cation and the list of the members who participated
in it. 1 7 SCDaHc

Petitioner also insists that the 20% requirement for registration of respondent
must be based not on the number of employees of a single division, but in all three
divisions of the company in all the o ces and plants of SMC since they are all part of
one bargaining unit. Petitioner refers to Section 1, Article 1 of the Collective Bargaining
Agreement (CBA), 1 8 quoted hereunder: aEDCAH

ARTICLE 1
SCOPE
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 Section 1. Appropriate Bargaining Unit. The appropriate bargaining unit
covered by this Agreement consists of all regular rank and le employees paid on
the basis of xed salary per month and employed by the COMPANY in its
Corporate Staff Units (CSU), San Miguel Brewing Products (SMBP) and San
Miguel Packaging Products (SMPP) and in different operations existing in the
City of Manila and suburbs, including Metal Closure and Lithography Plant
located at Canlubang, Laguna subject to the provisions of Article XV of this
Agreement provided however, that if during the term of this Agreement, a plant
within the territory covered by this Agreement is transferred outside but within a
radius of fty (50) kilometers from the Rizal Monument, Rizal Park, Metro Manila,
the employees in the transferred plant shall remain in the bargaining unit covered
by this Agreement. (Emphasis supplied.)

Petitioner thus maintains that respondent, in any case, failed to meet this 20%
membership requirement since it based its membership on the number of employees
of a single division only, namely, the SMPP. HSDIaC

There is merit in petitioner's contentions.

A legitimate labor organization 1 9 is de ned as "any labor organization duly
registered with the Department of Labor and Employment, and includes any branch or
local thereof." 2 0 The mandate of the Labor Code is to ensure strict compliance with the
requirements on registration because a legitimate labor organization is entitled to
speci c rights under the Labor Code, 2 1 and are involved in activities directly affecting
matters of public interest. Registration requirements are intended to afford a measure
of protection to unsuspecting employees who may be lured into joining unscrupulous
or y-by-night unions whose sole purpose is to control union funds or use the labor
organization for illegitimate ends. 2 2 Legitimate labor organizations have exclusive
rights under the law which cannot be exercised by non-legitimate unions, one of which
is the right to be certi ed as the exclusive representative 2 3 of all the employees in an
appropriate collective bargaining unit for purposes of collective bargaining. 2 4 The
acquisition of rights by any union or labor organization, particularly the right to le a
petition for certi cation election, rst and foremost, depends on whether or not the
labor organization has attained the status of a legitimate labor organization. 2 5 aAHISE

A perusal of the records reveals that respondent is registered with the BLR as a
"local" or "chapter" of PDMP and was issued Charter Certi cate No. 112 on 15 June
1999. Hence, respondent was directly chartered by PDMP.
The procedure for registration of a local or chapter of a labor organization is
provided in Book V of the Implementing Rules of the Labor Code, as amended by
Department Order No. 9 which took effect on 21 June 1997, and again by Department
Order No. 40 dated 17 February 2003. The Implementing Rules as amended by D.O. No.
9 should govern the resolution of the petition at bar since respondent's petition for
certi cation election was led with the BLR in 1999; and that of petitioner on 17 August
1999. 2 6 DSAICa

The applicable Implementing Rules enunciates a two-fold procedure for the

creation of a chapter or a local. The rst involves the a liation of an independent union
with a federation or national union or industry union. The second, nding application in
the instant petition, involves the direct creation of a local or a chapter through the
process of chartering. 2 7 cEDaTS

A duly registered federation or national union may directly create a local or

chapter by submitting to the DOLE Regional O ce or to the BLR two copies of the
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 following:
(a) A charter certi cate issued by the federation or national union indicating the
creation or establishment of the local/chapter;

(b) The names of the local/chapter's o cers, their addresses, and the principal
office of the local/chapter; and

(c) The local/chapter's constitution and by-laws; Provided, That where the
local/chapter's constitution and by-laws is the same as that of the
federation or national union, this fact shall be indicated accordingly. SACTIH

All the foregoing supporting requirements shall be certi ed under oath by

the Secretary or the Treasurer of the local/chapter and attested to by its President.
2 8 DTEHIA

The Implementing Rules stipulate that a local or chapter may be directly created
by a federation or national union. A duly constituted local or chapter created in
accordance with the foregoing shall acquire legal personality from the date of ling of
the complete documents with the BLR. 2 9 The issuance of the certi cate of registration
by the BLR or the DOLE Regional O ce is not the operative act that vests legal
personality upon a local or a chapter under Department Order No. 9. Such legal
personality is acquired from the ling of the complete documentary requirements
enumerated in Section 1, Rule VI. 3 0 CAIHTE

Petitioner insists that Section 3 of the Implementing Rules, as amended by

Department Order No. 9, violated Article 234 of the Labor Code when it provided for
less stringent requirements for the creation of a chapter or local. This Court disagrees.
Article 234 of the Labor Code provides that an independent labor
organization acquires legitimacy only upon its registration with the BLR: TaCIDS

Any applicant labor organization, association or group of unions or

workers shall acquire legal personality and shall be entitled to the rights and
privileges granted by law to legitimate labor organizations upon issuance of the
certificate of registration based on the following requirements:

(a) Fifty pesos (P50.00) registration fee;

(b) The names of its o cers, their addresses, the principal address of the labor
organization, the minutes of the organizational meetings and the list of the
workers who participated in such meetings;
(c) The names of all its members comprising at least twenty percent (20%) of all
the employees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its
annual financial reports; and
(e) Four (4) copies of the constitution and by-laws of the applicant union, minutes
of its adoption or rati cation, and the list of the members who participated
in it. (Italics supplied.)

It is emphasized that the foregoing pertains to the registration of an independent

labor organization, association or group of unions or workers.
However, the creation of a branch, local or chapter is treated differently. This
Court, in the landmark case of Progressive Development Corporation v. Secretary,
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 Department of Labor and Employment, 3 1 declared that when an unregistered union
becomes a branch, local or chapter, some of the aforementioned requirements for
registration are no longer necessary or compulsory. Whereas an applicant for
registration of an independent union is mandated to submit, among other things, the
number of employees and names of all its members comprising at least 20% of the
employees in the bargaining unit where it seeks to operate, as provided under Article
234 of the Labor Code and Section 2 of Rule III, Book V of the Implementing Rules, the
same is no longer required of a branch, local or chapter. 3 2 The intent of the law in
imposing less requirements in the case of a branch or local of a registered federation
or national union is to encourage the a liation of a local union with a federation or
national union in order to increase the local union's bargaining powers respecting terms
and conditions of labor. 3 3
Subsequently, in Pagpalain Haulers, Inc. v. Trajano 3 4 where the validity of
Department Order No. 9 was directly put in issue, this Court was unequivocal in nding
that there is no inconsistency between the Labor Code and Department Order No. 9. IEaHSD

As to petitioner's claims that respondent obtained its Certi cate of Registration

through fraud and misrepresentation, this Court nds that the imputations are not
impressed with merit. In the instant case, proof to declare that respondent committed
fraud and misrepresentation remains wanting. This Court had, indeed, on several
occasions, pronounced that registration based on false and fraudulent statements and
documents confer no legitimacy upon a labor organization irregularly recognized,
which, at best, holds on to a mere scrap of paper. Under such circumstances, the labor
organization, not being a legitimate labor organization, acquires no rights. 3 5
This Court emphasizes, however, that a direct challenge to the legitimacy of a
labor organization based on fraud and misrepresentation in securing its certi cate of
registration is a serious allegation which deserves careful scrutiny. Allegations thereof
should be compounded with supporting circumstances and evidence. The records of
the case are devoid of such evidence. Furthermore, this Court is not a trier of facts, and
this doctrine applies with greater force in labor cases. Findings of fact of administrative
agencies and quasi-judicial bodies, such as the BLR, which have acquired expertise
because their jurisdiction is con ned to speci c matters, are generally accorded not
only great respect but even finality. 3 6
IcHDCS

Still, petitioner postulates that respondent was not validly and legitimately
created, for PDMP cannot create a local or chapter as it is not a legitimate labor
organization, it being a trade union center. TcaAID

Petitioner's argument creates a predicament as it hinges on the legitimacy of

PDMP as a labor organization. Firstly, this line of reasoning attempts to predicate that a
trade union center is not a legitimate labor organization. In the process, the legitimacy
of PDMP is being impugned, albeit indirectly. Secondly, the same contention premises
that a trade union center cannot directly create a local or chapter through the process
of chartering.
Anent the foregoing, as has been held in a long line of cases, the legal personality
of a legitimate labor organization, such as PDMP, cannot be subject to a collateral
attack. The law is very clear on this matter. Article 212 (h) of the Labor Code, as
amended, de nes a legitimate labor organization 3 7 as "any labor organization duly
registered with the DOLE, and includes any branch or local thereof." 3 8 On the other
hand, a trade union center is any group of registered national unions or federations
organized for the mutual aid and protection of its members; for assisting such
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 members in collective bargaining; or for participating in the formulation of social and
employment policies, standards, and programs, and is duly registered with the DOLE in
accordance with Rule III, Section 2 of the Implementing Rules. 3 9 IDCScA

The Implementing Rules stipulate that a labor organization shall be deemed

registered and vested with legal personality on the date of issuance of its certi cate of
registration. Once a certi cate of registration is issued to a union, its legal personality
cannot be subject to collateral attack. 4 0 It may be questioned only in an independent
petition for cancellation in accordance with Section 5 of Rule V, Book V of the
Implementing Rules. The aforementioned provision is enunciated in the following: DaTISc

Sec. 5. Effect of registration. The labor organization or workers'

association shall be deemed registered and vested with legal personality on the
date of issuance of its certi cate of registration. Such legal personality cannot
thereafter be subject to collateral attack, but may be questioned only in an
independent petition for cancellation in accordance with these Rules. SCEHaD

PDMP was registered as a trade union center and issued Registration Certi cate
No. FED-11558-LC by the BLR on 14 February 1991. Until the certi cate of registration
of PDMP is cancelled, its legal personality as a legitimate labor organization subsists.
Once a union acquires legitimate status as a labor organization, it continues to be
recognized as such until its certi cate of registration is cancelled or revoked in an
independent action for cancellation. 4 1 It bears to emphasize that what is being directly
challenged is the personality of respondent as a legitimate labor organization and not
that of PDMP. This being a collateral attack, this Court is without jurisdiction to
entertain questions indirectly impugning the legitimacy of PDMP.
Corollarily, PDMP is granted all the rights and privileges appurtenant to a
legitimate labor organization, 4 2 and continues to be recognized as such until its
certi cate of registration is successfully impugned and thereafter cancelled or revoked
in an independent action for cancellation.
We now proceed to the contention that PDMP cannot directly create a local or a
chapter, it being a trade union center. TDcAIH

This Court reverses the nding of the appellate court and BLR on this ground, and
rules that PDMP cannot directly create a local or chapter.
After an exhaustive study of the governing labor law provisions, both statutory
and regulatory, 4 3 we nd no legal justi cation to support the conclusion that a trade
union center is allowed to directly create a local or chapter through chartering.
Apropos, we take this occasion to reiterate the rst and fundamental duty of this Court,
which is to apply the law. The solemn power and duty of the Court to interpret and
apply the law does not include the power to correct by reading into the law what is not
written therein. 4 4 HAIaEc

Presidential Decree No. 442, better known as the Labor Code, was enacted in
1972. Being a legislation on social justice, 4 5 the provisions of the Labor Code and the
Implementing Rules have been subject to several amendments, and they continue to
evolve, considering that labor plays a major role as a socio-economic force. The Labor
Code was rst amended by Republic Act No. 6715, and recently, by Republic Act No.
9481. Incidentally, the term trade union center was never mentioned under Presidential
Decree No. 442, even as it was amended by Republic Act No. 6715. The term trade
union center was rst adopted in the Implementing Rules, under Department Order No.
9. cEaCAH

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 Culling from its de nition as provided by Department Order No. 9, a trade union
center is any group of registered national unions or federations organized for the
mutual aid and protection of its members; for assisting such members in collective
bargaining; or for participating in the formulation of social and employment policies,
standards, and programs, and is duly registered with the DOLE in accordance with Rule
III, Section 2 of the Implementing Rules. 4 6 The same rule provides that the application
for registration of an industry or trade union center shall be supported by the following:
ESTDIA

(a) The list of its member organizations and their respective presidents and, in the
case of an industry union, the industry where the union seeks to operate;
(b) The resolution of membership of each member organization, approved by the
Board of Directors of such union;
(c) The name and principal address of the applicant, the names of its o cers and
their addresses, the minutes of its organizational meeting/s, and the list of
member organizations and their representatives who attended such
meeting/s; and
(d) A copy of its constitution and by-laws and minutes of its rati cation by a
majority of the presidents of the member organizations, provided that
where the rati cation was done simultaneously with the organizational
meeting, it shall be su cient that the fact of rati cation be included in the
minutes of the organizational meeting. 4 7

Evidently, while a "national union" or "federation" is a labor organization with at

least ten locals or chapters or a liates, each of which must be a duly certi ed or
recognized collective bargaining agent; 4 8 a trade union center, on the other hand, is
composed of a group of registered national unions or federations. 4 9 cDAEIH

The Implementing Rules, as amended by Department Order No. 9, provide that "a
duly registered federation or national union" may directly create a local or chapter. The
provision reads: HScCEa

Section 1. Chartering and creation of a local/chapter. — A duly registered

federation or national union may directly create a local/chapter by submitting to
the Regional Office or to the Bureau two (2) copies of the following:
(a) A charter certi cate issued by the federation or national union
indicating the creation or establishment of the local/chapter;
(b) The names of the local/chapter's o cers, their addresses, and the
principal office of the local/chapter; and
(c) The local/chapter's constitution and by-laws; provided that where the
local/chapter's constitution and by-laws is the same as that of the federation or
national union, this fact shall be indicated accordingly.ASDCaI

All the foregoing supporting requirements shall be certi ed under oath by

the Secretary or the Treasurer of the local/chapter and attested to by its President.
5 0 ESTDcC

Department Order No. 9 mentions two labor organizations either of which is

allowed to directly create a local or chapter through chartering — a duly registered
federation or a national union. Department Order No. 9 de nes a "chartered local" as a
labor organization in the private sector operating at the enterprise level that acquired
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 legal personality through a charter certi cate, issued by a duly registered federation or
national union and reported to the Regional O ce in accordance with Rule III, Section 2-
E of these Rules. 5 1 IHCSTE

Republic Act No. 9481 or "An Act Strengthening the Workers' Constitutional Right
to Self-Organization, Amending for the Purpose Presidential Decree No. 442, As
Amended, Otherwise Known as the Labor Code of the Philippines" lapsed 5 2 into law on
25 May 2007 and became effective on 14 June 2007. 5 3 This law further amends the
Labor Code provisions on Labor Relations.
Pertinent amendments read as follows: SCcHIE

SEC. 1. Article 234 of Presidential Decree No. 442, as amended, otherwise

known as the Labor Code of the Philippines, is hereby further amended to read as
follows:

ART. 234. Requirements of Registration. — A federation, national

union or industry or trade union center or an independent union shall
acquire legal personality and shall be entitled to the rights and privileges
granted by law to legitimate labor organizations upon issuance of the
certificate of registration based on the following requirements:

(a) Fifty pesos (P50.00) registration fee;

(b) The names of its o cers, their addresses, the principal address
of the labor organization, the minutes of the organizational meetings and
the list of the workers who participated in such meetings;

(c) In case the applicant is an independent union, the names of all

its members comprising at least twenty percent (20%) of all the employees
in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more
years, copies of its annual financial reports; and
(e) Four copies of the constitution and by-laws of the applicant
union, minutes of its adoption or rati cation, and the list of the members
who participated in it.
SEC. 2. A new provision is hereby inserted into the Labor Code as Article
234-A to read as follows: THAICD

ART. 234-A. Chartering and Creation of a Local Chapter. — A duly

registered federation or national union may directly create a local chapter
by issuing a charter certi cate indicating the establishment of the local
chapter. The chapter shall acquire legal personality only for purposes of
ling a petition for certi cation election from the date it was issued a
charter certificate.

The chapter shall be entitled to all other rights and privileges of a

legitimate labor organization only upon the submission of the following
documents in addition to its charter certificate:
(a) The names of the chapter's o cers, their addresses, and the
principal office of the chapter; and TAacHE

(b) The chapter's constitution and by-laws: Provided, That where the
chapter's constitution and by-laws are the same as that of the federation or
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 the national union, this fact shall be indicated accordingly.
The additional supporting requirements shall be certi ed under oath
by the secretary or treasurer of the chapter and attested by its president.
(Emphasis ours.) ICTaEH

Article 234 now includes the term trade union center, but interestingly, the
provision indicating the procedure for chartering or creating a local or chapter, namely
Article 234-A, still makes no mention of a "trade union center." IDaEHC

Also worth emphasizing is that even in the most recent amendment of the
implementing rules, 5 4 there was no mention of a trade union center as being among the
labor organizations allowed to charter. ISaCTE

This Court deems it proper to apply the Latin maxim expressio unius est exclusio
alterius. Under this maxim of statutory interpretation, the expression of one thing is the
exclusion of another. When certain persons or things are speci ed in a law, contract, or
will, an intention to exclude all others from its operation may be inferred. If a statute
speci es one exception to a general rule or assumes to specify the effects of a certain
provision, other exceptions or effects are excluded. 5 5 Where the terms are expressly
limited to certain matters, it may not, by interpretation or construction, be extended to
other matters. 5 6 Such is the case here. If its intent were otherwise, the law could have
so easily and conveniently included "trade union centers" in identifying the labor
organizations allowed to charter a chapter or local. Anything that is not included in the
enumeration is excluded therefrom, and a meaning that does not appear nor is intended
or re ected in the very language of the statute cannot be placed therein. 5 7 The rule is
restrictive in the sense that it proceeds from the premise that the legislating body
would not have made speci c enumerations in a statute if it had the intention not to
restrict its meaning and con ne its terms to those expressly mentioned. 5 8 Expressium
facit cessare tacitum. 5 9 What is expressed puts an end to what is implied. Casus
omissus pro omisso habendus est. A person, object or thing omitted must have been
omitted intentionally. aSTcCE

Therefore, since under the pertinent status and applicable implementing rules,
the power granted to labor organizations to directly create a chapter or local through
chartering is given to a federation or national union, then a trade union center is without
authority to charter directly. DAEaTS

The ruling of this Court in the instant case is not a departure from the policy of
the law to foster the free and voluntary organization of a strong and united labor
movement, 6 0 and thus assure the rights of workers to self-organization. 6 1 The
mandate of the Labor Code in ensuring strict compliance with the procedural
requirements for registration is not without reason. It has been observed that the
formation of a local or chapter becomes a handy tool for the circumvention of union
registration requirements. Absent the institution of safeguards, it becomes a
convenient device for a small group of employees to foist a not-so-desirable federation
or union on unsuspecting co-workers and pare the need for wholehearted voluntariness,
which is basic to free unionism. 6 2 As a legitimate labor organization is entitled to
speci c rights under the Labor Code and involved in activities directly affecting public
interest, it is necessary that the law afford utmost protection to the parties affected. 6 3
However, as this Court has enunciated in Progressive Development Corporation v.
Secretary of Department of Labor and Employment, it is not this Court's function to
augment the requirements prescribed by law. Our only recourse, as previously
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 discussed, is to exact strict compliance with what the law provides as requisites for
local or chapter formation. 6 4
In sum, although PDMP as a trade union center is a legitimate labor organization,
it has no power to directly create a local or chapter. Thus, SMPPEU-PDMP cannot be
created under the more lenient requirements for chartering, but must have complied
with the more stringent rules for creation and registration of an independent union,
including the 20% membership requirement.
WHEREFORE, the instant Petition is GRANTED. The Decision dated 09 March
2005 of the Court of Appeals in CA-GR SP No. 66200 is REVERSED and SET ASIDE. The
Certi cate of Registration of San Miguel Packaging Products Employees Union–
Pambansang Diwa ng Manggagawang Pilipino is ORDERED CANCELLED, and SMPPEU-
PDMP DROPPED from the rolls of legitimate labor organizations.
Costs against petitioner.
SO ORDERED.
Ynares-Santiago, Austria-Martinez, Nachura and Reyes, JJ., concur.

Footnotes
1. The Bureau of Labor Relations (BLR) was omitted as public respondent from the title of the
case. In appeals via Petition for Certiorari under Rule 45 of the Revised Rules of Court,
the tribunal promulgating the appealed Decision is not impleaded.
2. Penned by Associate Justice Mario L. Guarina III with Associate Justices Marina L. Buzon
and Santiago Javier Ranada, concurring; Rollo, pp. 23-31.

3. CA rollo, pp. 17-21.

4. Rollo, p. 51.

5. Charter Certificate; CA rollo, p. 45.

6. The following documents were submitted:

a. Charter Certificate

b. Constitution and By-Laws

c. Lists and Addresses of Union Officers

d. Financial Report

e. Organization Meeting and Joint Resolution and Petition for Certification Election
7. Certificate of Creation of Chapter/local; CA rollo, p. 44.

8. On 15 June 1999, within the freedom period of the Collective Bargaining Agreement,
respondent filed a Petition for Certification Election covering SMC-SMPP. The three
petitions were consolidated on appeal with an earlier petition for certification election
filed by San Miguel Corporation Employees Union Greater Manila and Canlubang Area
(SMCEU-GMCA) docketed as OS-A-2-17-00.

9. Id. at 18; Section 2 of Rule XI, Book V of the Implementing Rules, as amended by D.O. No. 9
provides that where two or more petitions for certification election involving the same
bargaining unit are filed in one Regional Office, the same shall be automatically
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 consolidated.

10. Article 239. Grounds for Cancellation of Union Registration. The following shall constitute
grounds for cancellation of union registration:
a. Misrepresentation, false statement or fraud in connection with the adoption or
ratification of the constitution and by-laws or amendments thereto, the minutes of
ratification, and the list of members who took part in the ratification;

b. Failure to submit the documents mentioned in the preceding paragraph within thirty
(30) days from adoption or ratification of the constitution and by-laws of amendments
thereto;

c. Misrepresentation, false statements or fraud in connection with the election of

officers, minutes of the election of officers, the list of voters, or failure to submit these
documents together with the list of the newly elected/appointed officers and their postal
addresses within thirty (30) days from election; . . . .

11. The Labor Code stipulates the following:

Article 234. Requirements of Registration. Any applicant labor organization, association

or group of unions or workers shall acquire legal personality and shall be entitled to the
rights and privileges granted by law to legitimate labor organizations upon issuance of
the certificate of registration based on the following requirements:

a. Fifty pesos (P50.00) registration fee;

b. The names of its officers, their addresses, the principal address of the labor
organization, the minutes of the organizational meetings and the list of the workers who
participated in such meetings;

c. The names of all its members comprising at least twenty percent (20%) of all the
employees in the bargaining unit where it seeks to operate;
d. If the applicant union has been in existence for one or more years, copies of its annual
financial reports; and

e. Four (4) copies of the constitution and by-laws of the applicant union, minutes of its
adoption or ratification and the list of the members who participated in it.
12. CA rollo, pp. 33-39.

13. Id. at 25-32.

14. Id. at 20-21.

15. Id. at 22-24.

16. Rollo, pp. 29-30.

17. Article 234, Labor Code.

18. CA rollo, pp. 31-32.

19. A labor organization is any union or association of employees which exists in whole or in
part for the purpose of collective bargaining or for dealing with employers concerning
terms and conditions of employment. [Section 1 (h), Rule 1, Book V of the Implementing
Rules, as amended by Department Order No. 9].

20. Article 212 (g), Labor Code; Section 1 (i), Rule 1, Book V of the Implementing Rules, as
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 amended by Department Order No. 9.
21. Article 242 of the Labor Code grants the following:

Rights of Legitimate Labor Organizations. A legitimate labor organization shall have the
right:
(a) To act as the representative of its members for the purpose of collective bargaining;

(b) To be certified as the exclusive representative of all the employees in an appropriate

collective bargaining unit for purposes of collective bargaining;
(c) To be furnished by the employer, upon written request, with the annual audited
financial statements, including the balance sheet and the profit and loss statement,
within thirty (30) calendar days from the date of receipt of the request, after the union
has been duly recognized by the employer or certified as the sole and exclusive
bargaining representatives of the employees in the bargaining unit, or within sixty (60)
calendar days before the expiration of the existing collective bargaining agreement, or
during the collective bargaining negotiation;
(d) To own property, real or personal, for the use and benefit of the labor organization
and its members;

(e) To sue and be sued in its registered name; and

(f) To undertake all other activities designed to benefit the organization and its members
including cooperative, housing welfare and other projects not contrary to law.

22. Progressive Development Corporation v. Secretary, Department of Labor and Employment,

G.R. No. 96425, 4 February 1992, 205 SCRA 802, 808.
23. Provided there is compliance with the requirements.

24. San Miguel Foods, Inc.-Cebu B-Meg Feed Plant v. Laguesma, 331 Phil. 356, 371 (1996).
25. Progressive Development Corporation-Pizza Hut v. Laguesma, 338 Phil. 310, 321 (1997).

26. Section 1, Rule XXVI, Department Order No. 40, which states:

Section 1. Rules governing prior applications, petitions, complaints, cases. — All

applications, petitions, complaints, cases or incidents commenced or filed prior to the
effectivity of these amendatory Rules shall be governed by the old rules as amended by
Department Order No. 9, series of 1997.

27. Rule VI, Book V, Implementing Rules, as amended by Department Order No. 9. Additionally,
section 2 thereof provides that a duly registered workers' association may likewise
charter any of its branches, subject to the filing of the documents prescribed under
Section 1.

28. Section 1, Rule VI, Book V of the Implementing Rules, as amended by Department Order No.
9.
29. Section 3, Rule VI of the Implementing Rules of Book V, as amended by Department Order
No. 9, clearly states:

SEC. 3. Acquisition of legal personality by local/chapter. A local/chapter constituted in

accordance with Section 1 of this Rule shall acquire legal personality from the date of
filing of the complete documents enumerated therein. Upon compliance with all
documentary requirements, the Regional Office or Bureau shall issue in favor of the
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 local/chapter a certificate indicating that it is included in the roster of legitimate labor
organizations. (Laguna Autoparts Manufacturing Corporation v. Office of the Secretary,
Department of Labor and Employment, G.R. No. 157146, 29 April 2005, 457 SCRA 730,
740.
30. Progressive Development Corporation v. Secretary, Department of Labor and Employment,
supra note 22.
31. Id.
32. Progressive Development Corporation v. Secretary, Department of Labor and Employment,
id.; San Miguel Foods, Inc.-Cebu B-Meg Feed Plant v. Laguesma, supra note 24.
33. Progressive Development Corporation v. Secretary, Department of Labor and Employment,
supra note 22.
34. 369 Phil. 618, 627 (1999).

35. Progressive Development Corporation-Pizza Hut v. Laguesma, supra note 25.

36. Seastar Marine Services, Inc. v. Bul-An, Jr., G.R. No. 142609, 25 November 2004, 444 SCRA
140, 154-155; Naguiat v. National Labor Relations Commission, 336 Phil. 545, 553
(1997).

37. A labor organization is any union or association of employees which exists in whole or in
part for the purpose of collective bargaining or for dealing with employers concerning
terms and conditions of employment. [Section 1 (h), Rule 1, Book V of the Implementing
Rules, as amended by Department Order No. 9].

38. Article 212 (g), Labor Code; Section 1 (i), Rule 1, Book V of the Implementing Rules, as
amended by Department Order No. 9.
39. Section 1 (p), Rule I, Book V, of the Implementing Rules, as amended by Department Order
No. 9.

40. Tagaytay Highlands International Golf Club Incorporated v. Tagaytay Highlands Employees
Union-PGTWO, 443 Phil. 841, 852 (2003).
41. Laguna Autoparts Manufacturing Corporation v. Office of the Secretary, Department of
Labor and Employment, supra note 29.
42. Under Article 234 of the Labor Code, any applicant labor organization, association or group
of unions or workers shall acquire legal personality and shall be entitled to the rights and
privileges granted by law to legitimate labor organizations upon issuance of the
certificate of registration upon compliance with the documentary requirements.

43. As amended by Department Order No. 9, Department Order No. 40-03, and Department Order
No. 40-B-03.
44. Agote v. Lorenzo, G.R. No. 142675, 22 July 2005, 464 SCRA 60, 76.

45. As aptly put by Justice Laurel, social justice is the humanization of laws and the
equalization of social and economic forces by the state so that justice in its rational and
objectively secular conception may at least be approximated.
46. Section 1 (p), Rule I, Book V, of the Implementing Rules, as amended by Department Order
No. 9.

47. Under a different section; Section 2 (III), Rule III, Book V of the Implementing Rules, as
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 amended by Department Order No. 9.

48. Rule I (m), Book V, Implementing Rules, as amended by Department Order No. 9.

49. Rule (p), id.

50. Section 1, Rule VI, Book V, id.

51. Section 1 (i), Rule I, Book V, Implementing Rules, as amended by Department Order No. 40-
03.
52 Republic Act No. 9481 was not signed by the President, but lapsed into law by virtue of the
provisions of the 1987 Philippine Constitution.

53. Republic Act No. 9481 was published on 30 May 2007 in a newspaper of general circulation
(MALAYA). The date of effectivity is computed 15 days from date of publication.
54. Subsequently amended by Department Order No. 40-B-03, Department Order No. 40-C-05,
and Department Order No. 40-D-05.

55. Black's Law Dictionary, p. 581; Office of the Ombudsman v. Valera, G.R. No. 164250, 5
September 2005, 471 SCRA 715, 746 and City Government of San Pablo, Laguna v.
Reyes, 364 Phil. 842, 853 (1999).
56. Sarmiento, III v. Mison, G.R. No. 79974, 17 December 1987, 156 SCRA 549, 552; Integrated
Bar of the Philippines v. Zamora, 392 Phil. 618, 642 (2000).
57. Singapore Airlines Local Employees Association v. National Labor Relations Commission,
215 Phil. 420, 428 (1984).

58. San Pablo Mfg. Corp. v. Commissioner of Internal Revenue, G.R. No. 147749, 22 June 2006,
492 SCRA 192, 200.
59. Abakada Guro Party List v. Ermita, G.R. No. 168056, 1 September 2005, 469 SCRA 1,
Espiritu v. Cipriano, G.R. No. 32743, February 15, 1974, 55 SCRA 533, 538.
60. Chapter 1, Book V, Labor Code, as amended by Republic Act No. 6715.
61. As embodied under Article 3 of the Labor Code.

62. Progressive Development Corporation v. Secretary, Department of Labor and Employment,

supra note 22.
63. Article 242 of the Labor Code grants the following:
Rights of Legitimate Labor Organizations. A legitimate labor organization shall have the
right:

(a) To act as the representative of its members for the purpose of collective bargaining;
(b) To be certified as the exclusive representative of all the employees in an appropriate
collective bargaining unit for purposes of collective bargaining;

(c) To be furnished by the employer, upon written request, with the annual audited
financial statements, including the balance sheet and the profit and loss statement,
within thirty (30) calendar days from the date of receipt of the request, after the union
has been duly recognized by the employer or certified as the sole and exclusive
bargaining representatives of the employees in the bargaining unit, or within sixty (60)
calendar days before the expiration of the existing collective bargaining agreement, or
during the collective bargaining negotiation;
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 (d) To own property, real or personal, for the use and benefit of the labor organization
and its members;
(e) To sue and be sued in its registered name; and

(f) To undertake all other activities designed to benefit the organization and its members
including cooperative, housing welfare and other projects not contrary to law.
64. Supra note 22.

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